Zimbabwe’s gold sector is booming. At least that’s what the numbers say. The Reserve Bank of Zimbabwe (RBZ) reported that gold exports earned the country over $2.1 billion in 2023, making the yellow metal the highest foreign currency earner in the nation. But beneath the sparkle lies a trail of tough questions, uncomfortable truths, and a long history of shadowy dealings that continue to dog the country’s most valuable export.
For a nation struggling with inflation, foreign currency shortages, and an economy battered by sanctions, drought, and debt, gold is more than a commodity—it’s a lifeline. The government has proudly touted its ability to shore up foreign reserves and reduce reliance on international aid through gold revenues. Yet, behind the numbers, a growing number of critics and observers are pointing to systemic problems that suggest all that glitters may not be as golden as it seems.
First, there’s the issue of smuggling. Despite repeated pledges to tighten border controls and improve regulation, Zimbabwe continues to lose an estimated 30 to 40% of its annual gold production to illicit trade. Much of the smuggled gold flows through neighbouring South Africa and the United Arab Emirates, disappearing into global markets with little trace. According to watchdog groups and investigative journalists, gold smuggling is not just a matter of individual criminality—it’s part of a deeply entrenched network involving political elites, shadowy middlemen, and security forces.
One notorious example came in 2022, when Al Jazeera’s “Gold Mafia” documentary exposed a network of Zimbabwean officials, pastors, and businesspeople allegedly engaged in laundering gold proceeds and facilitating illicit deals. The documentary shook the nation and triggered international scrutiny, but concrete accountability remains elusive. None of the high-profile individuals implicated have faced prosecution, and some even maintain high-level government ties.
The opacity of the gold sector is another concern. While the RBZ and Fidelity Gold Refinery (the sole legal buyer of gold in Zimbabwe) claim improved transparency, independent audits and reporting remain scarce. Civil society groups have repeatedly called for full public disclosure of gold export contracts, production figures, and revenue management, but these calls have largely gone unanswered. The absence of oversight raises questions about how much of Zimbabwe’s gold income actually benefits its citizens.
Artisanal miners—who produce more than 60% of Zimbabwe’s gold—are central to this debate. Operating under tough conditions, with little legal protection or access to formal markets, they are frequently exploited by powerful syndicates who buy their gold at below-market prices. These miners, many of them young men from impoverished rural areas, are often left vulnerable to accidents, violence, and environmental degradation. While the government has launched campaigns to formalise the sector and provide equipment, progress has been slow, and corruption continues to hinder reform efforts.
Then there’s the question of where the money goes. While gold export earnings are meant to support macroeconomic stability, evidence suggests a significant portion is funnelled into patronage networks, elite enrichment, and opaque infrastructure deals. Critics argue that gold revenue is being used to stabilise the Zimbabwe dollar through quasi-fiscal activities by the central bank—effectively masking broader structural problems rather than addressing them. Some economists warn that reliance on gold as a monetary policy tool is both risky and unsustainable, especially given global price fluctuations and declining investor confidence.
To be fair, the government is not oblivious to these challenges. President Emmerson Mnangagwa has repeatedly pledged to clean up the gold sector and increase revenues. There have been attempts to tighten licensing, crack down on smuggling, and promote beneficiation—adding value to gold before export. A new Mines and Minerals Amendment Bill is under review, promising greater transparency and environmental safeguards. But whether these reforms will be implemented effectively remains to be seen.
The wider geopolitical context also matters. Zimbabwe’s gold is increasingly tied to its strategic relationships, particularly with China and Russia. Chinese companies are deeply embedded in the mining sector, often operating joint ventures with the government. Meanwhile, reports suggest growing Russian interest in Zimbabwe’s gold, raising concerns about the use of mineral wealth as a tool of foreign influence. For a country already navigating Western sanctions and economic isolation, such partnerships may be pragmatic—but they also deepen fears of resource dependency and loss of sovereignty.
In the end, Zimbabwe’s golden moment may hinge less on how much it extracts and exports, and more on how it manages, distributes, and safeguards that wealth. Until the murky dealings, regulatory gaps, and elite interests are tackled head-on, gold may continue to enrich a few while failing to deliver real prosperity to the many. The country has a golden opportunity—but whether it will shine for the people or simply line the pockets of the powerful is a question that still needs answering.
